Pricing for profit: How to optimize your pricing strategy

The ecommerce industry has been growing rapidly for the past few years. As it becomes a $1.5 trillion business worldwide, pricing strategy is quickly becoming a crucial aspect of online retail strategy. The use of price intelligence and dynamic pricing solutions is on the rise, as retail giants like Amazon reap the benefits. Many retailers struggle to keep their heads above water, with others like Best Buy and Wal-Mart utilizing state of the art pricing technology. Learn how to price for profit inside.

In 2018, when the majority of marketing specialists are focused on Magento 2 and the so-called “exclusive” approach to pricing and offers, you have a chance to hit directly to a target audience with Customer Groups solution.

The WisePricer Magento extension enables online retailers to optimize product pricing based on advanced pricing rules to beat the competition and price profitably. WisePricer brings that pricing intelligence to online retailers and gives them the competitive advantage that had previously been reserved for the companies with the largest budgets and most technical talent. Retail giants might have the upper hand due to size, but one thing they are doing right that retailers of all sizes should and can emulate is implementing a dynamic pricing strategy that incorporates competitive monitoring.

How WisePricer’s Magento Extension Can Help

WisePricer’s Magento extension does the heavy lifting for retailers because we all know how important it is to have flexible pricing that can react to external market changes. Our automated solutions make monitoring, repricing, and analyzing a breeze for retailers who want to keep up with their industry and get ahead of their main competitors. The WisePricer extension helps online retailers successfully increase sales, profits, and revenue by optimizing pricing and merchandising. It puts retailers into the driver’s seat of their pricing strategy, as they are able to essentially A/B test to learn what works best. On average WisePricer users see a 22% increase in revenue, 7% increase in profit, and 18% increase in conversions. That’s because it allows retailers to reprice in real time and remain competitive around the clock.

Awareness

WisePricer makes it easy for online retailers to manage multiple online stores and monitor competitors in one place. The Magento extension aggregates competitor and sales data, so that online retailers can reprice and merchandise intelligently. This data comes from products that are tracked across many marketplaces and competitors. In addition to product pricing, retailers are also able to keep track of competitors’ inventory with the assortment feature. Shoppers are much more likely to go to a website or store that has everything they want, instead of making several separate purchases. Keeping track of how your inventory compares to that of your top competitors and taking action based on that data boosts conversions, revenue, and profit.

The Importance of Automation

The market is constantly changing, so pricing must be able to keep up in order to maximize profit. Manually monitoring competitors and repricing products one at a time can be anywhere from tedious to impossible. That’s where WisePricer’s Magento extension comes in. It’s easy to set a minimum price for items, compare prices, and reprice automatically according to customized rules of your choosing. WisePricer seamlessly syncs with Magento stores and allows retailers to consistently beat their competitors. It has an easy to use interface that can grow along with any online store as it scales. The rules that WisePricer users create can help fulfill goals, like sales quotas and improve profit margins. WisePricer’s automated solution ensures that no matter what time of day it is, your pricing is up to date and optimized for success.

Analysis

WisePricer makes it possible for online retailers to analyze how well their pricing rules are working. Acting based on instinct is not the way to go when it comes to setting pricing. Take the guesswork out of your pricing strategy and price for profit. The platform offers 30 day tracking history that allows online retailers to monitor their progress and how competitor prices have changed. See results in real time to justify the revenue, sales, and/or profit impact and make better informed strategic pricing decisions.

What Dynamic Pricing Can Do for Your Business

Pricing is an essential component of brand perception. To have a strong business with loyal customers you must be able to deliver the right products at the right time at the right price. The intelligence WisePricer offers helps online retailers with all of these. The market is not stagnant, so your pricing shouldn’t be either. Stay flexible, but true to your brand image at the same time because engaging in price wars can be damaging to brand value. Price according to all of the factors that affect your business the most. Don’t be discouraged by the complexity of this task, because the WisePricer Magento extension can help you develop the best strategy. No two businesses are the same, so testing and customization are essential for developing the pricing strategy that works best for your business.

About The Author

Angelica Valentine is a Content Marketing Specialist at Wiser, the leading price intelligence engine. Wiser's core product, WisePricer is a full-featured pricing and merchandising engine that monitors, analyzes and re-prices retail products in real-time. WisePricer enables retailers to grow profit margins, price with confidence and improve merchandising through powering the development of a sound pricing strategy.